Actom SA
Country: South Africa
Market: Africa
Date of original investment: 2007
Deal type: Management buy-out
Energising South Africa
Without reliable and secure electrical infrastructure, sustained economic development is impossible. It powers commerce, fuels industry and creates possibilities.

For more than 100 years, Actom (formerly Alstom) has led the way as South Africa’s major electrical engineering, manufacturing, distribution and contracting company. The business runs 22 production facilities, owns 27 operating units and has 25 distribution centres across the country. It employs more than 6,000 people in South Africa, all working to ensure that supply meets the country’s desire for electricity.

Actis invested in Actom in 2008. This strategic partnership enabled the company to work closely with Eskom, South Africa’s state-owned electricity company, as the government embarked on a huge capital spending programme to build the network of power stations and power lines needed to meet South Africa’s growing domestic consumption. Building on its successful track record with Eskom and drawing on the firm’s other areas of expertise, Actom has subsequently secured a growing number of Eskom’s Boilerserve contracts and additional tenders.

Actis has also worked with Actom to improve operational efficiencies across the business through driving working capital management and cash flow generation and overseeing the company’s compliance with international environmental and safety standards. In future, Actom aims to extend its footprint across Africa, bringing electricity to anywhere it is needed and helping the nation fulfil its potential. The company is also exploring potential relationships with companies in India and other emerging markets.